Bitcoin’s price remains stagnant at $61,400, causing altcoins to move sideways. The price of BTC has failed to break through $62,500, keeping the market cautious. Insights from Bitcoin whales and miners can reveal the current market dynamics.
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1 Why are miner reserves low?
2 What does hash rate indicate?
2.1 Key insights
2.2 Conclusion
Why are miner reserves low?
BTC miner reserves hit a new 10-year low, reflecting ongoing sales. Continued outflows from ETFs have exacerbated the decline in BTC prices. As of now, mining reserves have recovered to the level of June 19th. The increasing costs of BTC and reasonable selling prices make continued miner sales logical. Visit COINTURK FINANCE for the latest financial and business news.
In the past 30 days, miner reserves have decreased by 1.18%, and by 1.45% in the past 90 days. Despite daily production, miner sales have exceeded reserves consumption. The recent halving event has reduced profitability, leading to the shutdown of inefficient ASIC devices and weakening the hash rate.
What does hash rate indicate?
Since early June, the hash rate has been declining, supporting the view that miners are shutting down operations. The decline in mining activity has led to increased sales in June, pushing BTC to yearly lows. Additionally, smaller block sizes have reduced miner fee income, causing sales pressure.
Key insights
The net inflow of funds into exchanges on June 22nd and 24th coincided with the weakening of BTC prices. The recent net outflow of 800 BTC from exchanges indicates a shift of assets to storage. Google searches for BTC surged in late June but have since declined, indicating waning interest. Increased whale trading volumes suggest a selling action in mid-June.
Conclusion
Recent data shows that both miners and whales are selling, with miners driven by rising costs and declining profitability. As reflected in search trends, investor interest is waning. Although BTC may experience limited growth, the consolidation phase may continue for some time.
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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware of the high volatility of cryptocurrencies and conduct their own research.